China has defended its role in financing a new hospital in The Bahamas, describing the project as a “livelihood initiative” funded through a highly preferential loan, after the United States urged Nassau to reconsider the multi-million-dollar agreement.
In a statement, the Chinese Embassy said the planned hospital in western New Providence is being jointly advanced by both countries based on “mutual respect and friendly consultation” to improve the well-being of Bahamians.
“The project aligns with the healthcare needs of The Bahamas and serves its best interests,” the embassy said, adding that Beijing respects the country’s sovereignty and supports its independent choice of development partners.
“China–Bahamas cooperation involves no geopolitical calculations, targets no third party, and should not be interfered with by any external party,” the statement added, while reaffirming China’s commitment to long-term cooperation and economic support for the Caribbean nation.
The comments came after US Ambassador to The Bahamas Herschel Walker called on the government to explore alternative financing arrangements for the new hospital project, which is being funded largely through a loan from China’s Export-Import Bank.
“It would be better to look at other financing options that adhere to international norms,” Walker said. “President Trump believes in fair deals that benefit both nations, and the United States is committed to being the economic and security partner of choice.”
Walker added that Washington stands ready to work with Nassau to help secure what he described as a better financing arrangement, whether through private or public sources, to deliver the healthcare infrastructure Bahamians need.
Last year, the Bahamian government signed an agreement to borrow US$195 million from the China Export-Import Bank to fund 73 per cent of the cost of the planned 200-bed hospital, with the remaining financing to come from the Ministry of Finance.
Health and Wellness Minister Dr. Michael Darville confirmed last week that the loan agreement includes a requirement for a 50-50 ratio of Bahamian to foreign construction workers. He told Parliament that the government is seeking to negotiate a higher share of local workers.
The project’s main contractor, China Railway Construction Corporation Ltd., is listed by the US Department of the Treasury’s Office of Foreign Assets Control on its restricted investment list due to links to China’s military-industrial complex.
Walker also warned that the loan arrangement could subject The Bahamas to Chinese law and labour standards, saying it “doesn’t appear to be in the best interests of The Bahamas” to accept such conditions.
Darville said the Bahamian government had engaged US officials at senior levels, including the US Export-Import Bank, regarding possible financing for the hospital but did not receive a proposal that met the country’s needs.
“While there were conversations, The Bahamas did not receive a financing response that met the scale, timing, and certainty required to advance this critical national project,” he said.
He stressed that the country’s partnership with the United States remains strong and is not being replaced by its agreement with China.
“The government of The Bahamas will continue to pursue practical, timely solutions that serve the best interests of the Bahamian people, guided by our national priorities, our development needs, and our sovereign right to make decisions in the public interest,” Darville said.
A feasibility study tabled in Parliament this week indicates that the government is also examining the possibility of funding public hospitals or tertiary healthcare through National Health Insurance contributions.
Meanwhile, National Security Minister Wayne Munroe said he expects the United States to back its statements with concrete support, particularly in helping secure financing for a new prison and virtual court complex.
Munroe said he views the US ambassador’s remarks not as interference but as an opportunity for collaboration, adding that he anticipates a positive response from the US Export-Import Bank if The Bahamas seeks funding for the prison project, which is expected to cost about US$50 million and be financed through a public-private partnership.
